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"No need to pay back national debt"

Published onsdag 13 april 2011 kl 10.40

There is no need for Sweden to pay back on the national debt since it is considerably low compared to other European countries and there are other, more important, reforms that needs funding, according to Dick Kling, the chairman of the Swedish Tax Payers Association.

Sweden’s national debt is about 30 percent of GDP but the government aims to pay back a significant chunk of that in the next few years.

But according to Kling the national debt is so low that it is not cause for concern.

“I think the government should be content with the current debt levels… It would be better to make strategic tax cuts for households and companies so they can invest and contribute to more growth,” he told Swedish Radio News.

But Finance Minister Anders Borg maintains that paying back more on the national debt will give Sweden more options if the economy crashes in the future. He would prefer to make Sweden debt free.

“If you have a large debt then you will put the whole economy at risk. No country is immune to financial problems…. We want to make sure that our chances to maintain high standards within childcare, schools etc are strong even during financial turmoil.”

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